#7 - Century Aluminum (NASDAQ:CENX)
Century Aluminum (NASDAQ: CENX) - Tariff stocks will continue to be in the news in 2019. But it’s important for investors to pick the right ones. Century Aluminum is projected to reach 117.7% growth in 2018, 154% in 2019, and has an expected 5-year growth rate of 154%. Century Aluminum is the second-largest producer of aluminum and is looking to grow as it restarts idled capacity. What analysts are looking for from CENX is consistency. They have become used to seeing the up-and-down performance in the company's top-line and bottom line performance. But since a strong 2017 (net profit came in at 51 cents per share), they are enjoying hearing the company anticipating that not only will they remain profitable in 2018, but they should increase their growth to around 82 cents per share. They are also projecting 2019 to be even better at $2.12 per share. This increased growth in forward earnings should help dramatically lower their P/E (currently just over 15) to a much more appealing multiple at just above 7.
The stock is currently trading at just over $12.20 per share, but with consistent profit results giving investors confidence in future growth, some analysts are seeing the stock tripling in value from today’s levels.
About Century Aluminum
Century Aluminum Company, together with its subsidiaries, engages in the production of standard-grade and value-added primary aluminum products in the United States and Iceland. It also owns and operates an alumina production facility in Iceland, and a carbon anode production facility in the Netherlands.
Read More - Current Price
- $22.49
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $21.00 (6.6% Downside)
For investors looking to find growth stocks, they will often look at metrics like the price-to-earnings (P/E) ratio to ensure that they are not buying stocks that are overvalued. However because the P/E ratio can be an indicator of value, it can work as a hindrance to growth.
If you’re looking for rapid growth, you often need to look at stocks that may appear, at first glance, to be overvalued. In this context, a higher P/E ratio can be the catalyst that pushes a stock’s price higher. But that doesn’t mean you have to be limited to stocks like Amazon and Apple. While it would be hard to argue that these stocks don’t present exceptional growth opportunities for 2019, there are other options for investors that may cost them a fraction of the per share cost of these behemoths.
The stocks in this report all have attractive earnings per share (EPS) growth outlooks that are making them candidates for monster growth not only right now but beyond. For investors, they reflect the best of both worlds, they can provide exceptional short-term growth with a reason to hold them and reap the benefits for several years.
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